Global Metalworking Fluid Market - Segmented by Product Type, by Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The global metalworking fluid market stood at 1,865.71 kilo metric ton in 2017. The market is expected to register a CAGR of 1.97% during the forecast period, 2018 to 2023. Asia-Pacific accounted for the largest market, accounting for around 41% of the global market in 2017.
Industrial Growth in MEA to Provide Numerous Opportunities
The Middle East & African region has witnessed higher industrial growth in the recent past and investment opportunities have increased with government support and policies. Countries, such as Egypt, Morocco, Kenya, Qatar, and Nigeria are key drivers of growth, with rising GDP growth rates in the near future. On the other hand, United Arab Emirates (UAE), Kuwait, and South Africa are expected to recover steadily during the forecast period (IMF). According to the Economy Minister of UAE, the country is planning to increase the contribution of its manufacturing industry from a current value of 11% of total Gross Domestic Product (GDP) to 20% of the GDP by 2020, with a target investment of USD 75 billion into the sector by 2025. Another prime opportunity for industrial growth in the country is the Dubai Expo that is to be held in 2020.
Kuwait, Algeria, and Morocco are projected to have a similar trend of moderately-high growth rate of about 3.5-4.2% over the forecast period. Iran is also expected to have higher growth in the construction sector, with 5.8% average growth rate, during the forecast period (2016-20). The lifting of international sanctions has given boost to the infrastructure activities in the country with an easier trade off. Moreover, in the rest of MEA, the automotive industry is expected to witness a rebound in the region, with new production streams facilitated in Algeria and Morocco, among others. The automotive industries in Morocco and Algeria witnessed growth rates of about 19.7% and 117%, respectively, between 2015 and 2016. This growth is expected to continue during the forecast period, owing to the rising consumer incomes, which, in turn, would provide a huge boost to the manufacturing output in the region, thereby boosting the metalworking fluid market.
Removal Fluids – The Dominant Product Type
Removal fluids are primarily used in industrial processes, which have cutting as their core technique. They are also used in boring, grinding, broaching, drilling, and sawing. These fluids help the process by cooling both the machining tools and the machined parts, along with protecting the latter from corrosion, by removing the metal bits and chips from it. The automotive sector is the major end- user of the removal fluids. With the growing production of automobiles, the demand for removal fluids is expected to increase during the forecast period.
Asia-Pacific to Dominate the Market Growth
Asia-Pacific has been the prime region supporting the growth of automotive production, with year-on-year growth rate of 7.6%, for 2015-16. China, India, the Philippines, and Vietnam are turning out to be potential markets for demand and supply of automobiles, owing to many automobile manufacturers establishing their manufacturing and assembly plants in these countries. This can be attributed to the availability of labor at low costs, raw material prices, and growing urban population in the region. Hence, the strong production rates of automotive from emerging countries in Asia-Pacific is expected to boost the demand for and usage of metalworking fluids during the forecast period.
Key Developments in the Market
April 2017: Quaker Chemical Corporation and Houghton International Inc. announced their plans to merge into a single entity.
Major Players: Houghton International Inc., BP PLC, Quaker Chemical Corporation, Fuchs, and Yushiro Chemical Industry Co. Ltd, among others.
Reasons to Purchase this Report
Current and future of the global metalworking fluids market in the developed and emerging markets
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
Countries that are expected to witness fastest growth during the forecast period
Identify the latest developments, market shares, and strategies employed by the major market players
3 months analyst support, along with the Market Estimate sheet (in excel).
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